USDJPY Elliot Waves Analysis For 8 January 2016

08 January 2016, USD/JPY

Wave Analysis:

USD/JPY is currently trading with a bullish bias. During the previuous trading day, usd/jpy traded short and ended up finding a support at 117.50, we expect 118.66 to mark the end of the current upward movement, however, a clear break above 118.53 would mean we are headed further long with targets at the upper green now resistive trendline. This pair should be traded alongside other pairs such as NZD/JPY, NZD/CHF, GBP/JPY, and CHF/JPY. These pairs have a strong positive correlation of up to +0.96 and are thus expected to have a similar price pattern. Thus, only buy or sell usd/jpy if all the other positively correlated pairs are giving the same signal.

Trade recommendation:

Remain long with targets at 118.66, a clear break above 118.53 would mean we will look for further long positions targets at the upper green, now resistive trend line.